Majid Plastics Group's Hotpack Packaging Industries to launch 100M UAE dirham manufacturing and logistics complex in Dubai; company also plans to open two more facilities in Doha and Abu Dhabi, UAE, in next two years under 300M UAE dirham expansion plan

Elyse Blye

DUBAI , September 6, 2013 (Khaleej Times) – Hotpack Packaging Industries is all set to launch its Dh100 million integrated manufacturing and logistics complex in Dubai Investments Park (DIP) on Monday.

Under a Dh300 million expansion plan, the Dubai-headquartered group plans to set up two more facilities in Doha and Abu Dhabi in the next two years. It shows intention to inaugurate the Dh40 million Doha facility spanning over 100,000 square feet by the end of 2014 while the construction of the Abu Dhabi facility will begin next month. The facility at ICAD City, covering 300,000 square feet, will cost Dh100 million to the group and will be ready by the middle of 2015.

"We are confident of achieving strong double-digit growth in the food packaging industry due to the highest global standards of quality and hygiene in the region," Abdul Jabbar P.B, managing director, Hotpack Packaging Industries, told Khaleej Times at a press conference on Thursday.

He said that the group operates four factories in the UAE and one in India, in addition to 15 own distribution centres across the GCC. He said the company would soon spend Dh60 million to open new branches in Jeddah and Riyadh.

"Hotpack has a team of 750-trained professionals and a strong base of 10,000 customers across the globe. The group has fleet of 300 vehicles and it deals with more than 1,700 products," he said.

Hotpack Packaging Industries, part of Majid Plastics Group, was established in 1995 as a company for manufacturing, marketing and the distribution of different varieties of food packaging materials and related products made of plastic, aluminum, foam, paper through its own manufacturing facilities functioning in Umm Al Quwain, Sharjah and Mussaffa in Abu Dhabi. It has operations across the Gulf countries including Oman, Kuwait, Bahrain and Qatar, as well as in India and in African and CIS countries.

The group has an annual turnover of Dh500 million and is eyeing further opportunities across the Middle East and Africa region and the next market. It is confident to double its revenues during the next two years amid considering strong demand of its products in the region.

"We will achieve Dh1 billion revenue target by 2015 as the company records strong sales growth every year since its inception in 1995," Abdul Jabbar said.

"Our sales growth is ranging between 15 per cent to 20 per cent annually," he said.

About the new integrated facility at DIP, he said that it is the biggest single facility in the UAE for the food packaging solutions. Managing director of Lulu Group International Yusuffali MA will inaugurate the facility, spanning over 350,000 square feet. It is equipped with the cutting-edge technology for competent production, storage and logistics operations, he said.

"The new facility, certified by ISO and ESMA, will be manufacturing several varieties of plastic, paper and aluminum products to cater to the food service industry, while complying with the highest global standards of quality and hygiene as well as abiding by the recommendations for sustainable practice. Our mission is to become No.1 in the field of disposable food packaging and related products in the continent," Jabbar said.

Ammar Al Duwaikh, sales and leasing manager, Dubai Investments Park, said: "We welcome Hotpack Packaging Industries to join the elite list of prestigious companies at DIP. Hotpack has emerged as a leading manufacturing and wholesale player in the food sector supporting industry segment, and we are committed to provide them with excellent infrastructure and utilities network to help them."

Zainudeen P.B, group general manager, Hotpack Packaging Industries, said the new integrated facility at DIP has been set up to supplement and expand our current production lines in the UAE.

"The facility will further boost our already strong supply network across the Gulf and African region and beyond. "We see more business and higher turnover in the coming years," he added.

"We hope the DIP's close proximity to the Jebel Ali port and Al Maktoum International Airport, coupled with the easy access to major highways of the UAE will enable us capitalise on the opportunities emerging from multiple industry segments and further develop our supply chain," Zainudeen said.

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